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Indonesian villagers call off oil field boycott
Community leaders in the Indonesian oil-rich province of Riau have called off their threat to blockade US firm Caltex following an agreement on compensation.
The leaders met Wednesday in the province's main town Pekanbaru and decided not to take action following an agreement between the firm, a delegation of the people of Riau and the central government.
The Jakarta Post quotes Al Azhar, coordinator of the Alliance for Riau People, as saying the residents still wanted the agreement to be published in an official state gazette.
He says they want this agreement from the government to be legalised.
The government last week granted PT Caltex Pacific Indonesia a one-year contract extension to operate the Coastal Plain Pekanbaru (CPP) block.
Riau community leaders, who say locals should get greater benefits from the oilfields, demanded that President Megawati Sukarnoputri review the extension and threatened a "mass blockade" of Caltex operations in the block.
Riau delegates, the central government and Caltex on Tuesday agreed that the company would pay more compensation through funding of education, public facilities and community development projects and would provide more jobs for locals including managerial posts.
9/08/01 19:47:02 | ABC Radio Australia News
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